Wal-Mart Cuts Guidance On Weak Traffic, Higher Expenses And Slow Online Growth — forbes.com

Following five consecutive quarters of comparable sales decline, Wal-Mart‘s results disappointed once again as it posted flat comparable sales growth for Q2 fiscal 2015. Driven by a consistent decline in store traffic, along with cautious consumer behavior, Wal-Mart barely matched its last year’s sales figures. The company’s earnings per share increased by just 0.6% as its profits were dented by higher healthcare costs. Following these results, Wal-Mart slashed its full year EPS guidance from $5.10-$5.45 to $4.90-$5.15 as it expects healthcare expenses, compliance costs, an increase in labor hours and e-commerce investments to weigh on its profits.

Read More